CBD is the non-psychoactive ingredient in cannabis, which allegedly has wellness properties, and can treat a range of various conditions, including pain management.
The FDA and CBD Regulation Is All Boxed Up
Cannabis stocks jumped higher on news of the FDA’s expedited CBD rule-making, driving the AdvisorShares Pure Cannabis ETF (YOLO) higher. | Source: Yahoo Finance
However, the Food and Drug Administration is boxed in in regards to permitting CBD to be put into food and beverages. That’s because CBD is the main ingredient in Epidiolex, which treats childhood epilepsy, and because the FDA permitted CBD’s use in a drug, then it is therefore classified as a drug.
Companies who want to add CBD into consumer products are thus trying to convince the FDA to expedite whatever rules they want to establish to regulate the molecule.
On the one hand, consumer product companies don’t want to take the usual route of clinical trials, because those will take years, and there’s a high rate of failure.
At the moment, a tacit compromise has been reached in which the FDA permits companies to sell oils and other topicals that contain limited amounts of CBD (less than 0.3 percent on a dry-weight basis) – as long as the seller doesn’t make outrageous claims regarding alleged benefits.
The reason the FDA won’t just throw a blanket approval over CBD is that there is the possibility of liver damage if highly-concentrated CBD is used for the long term, as it is for Epidiolex.
Without some form of regulatory approval,